This follows the signing of a partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) as part of its sustainable energy for smallholder farmers project that is being implemented in Ethiopia, Kenya, and Uganda.
A total of Sh120 million will initially be disbursed to 400 individuals in at least six counties: Kirinyaga, Meru, Muranga, Nakuru, Machakos, and Makueni, with the areas of investment being solar-powered irrigation, cooling, and drying, among other solar technologies.
“Because of this project, we will support smallholder farmers in accessing and using solar energy to improve their livelihoods and increase their resilience to climate change,” Faulu Chief Executive Officer Julius Ouma said.
“We also hope that our support will increase their productivity and economic competitiveness,” Ouma added.
In the initiative that will be rolled out in four phases, the microfinance firm will determine the financing needs of smallholder farmers for solar-powered appliances and equipment as well as develop appropriate financial products.
The lender will also identify reputable distributor partners for the relevant solutions and build capacity for both staff and potential customers.
Currently, most smallholder farmers use petrol- or diesel-powered engines to pump water for irrigation or watering livestock.
These are expensive to run, maintain, and release greenhouse gas (GHG) emissions into the environment.
“Through the provision of green financing solutions, this partnership will unlock access to modern renewable energy technologies and climate-smart practices that improve farmers’ livelihoods, greenhouse gas emissions are reduced and their farming activities become resilient to climate change,” Valerie Ostheimer, Project Leader at GIZ-EnDev Kenya, said.
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